Businesses are Flocking to Arizona- Here’s Why

April 8, 2022

Arizona can be the land of growth and opportunity, more so in the business scene. Many reasons attract and retain new and existing companies to thrive and be profitable in this State. There has recently been a shift where more companies looking to expand their businesses or explore new markets are gravitating towards Arizona.

The meal-kit distribution company, HelloFresh, and data connection experts, LiveRamp, have established themselves in Phoenix and are doing quite well. These two companies prove that Arizona is the business hub people need to be at. So why are all these businesses flocking to Arizona? What are the benefits of moving to Arizona for your business? We look at some of the reasons why in the list below.


When it comes to business, there are words we want to hear, and in this case, moderate and low taxes are the said words. Compared to other states, it is evident that tax rates in Arizona are pretty favorable to new and existing businesses.

The current corporate tax rate stands at 4.9 % in Arizona compared to New York at 6.5% and Los Angeles at 6.65%. Small and startup businesses benefit significantly from these low rates and give them a better chance to grow and expand.

The total tax obligation, including sales and property taxes, is considerably lowered since they change from one municipality. Tax credits are incentives driving people to make more business investments in this State. A tax credit is a discount that subtracts the credit a business has accrued from the total amount the company owes the state.

These and other tax deductions make Arizona the shape you want to do business. Applying for taxes and the necessary business permits are easy and do not require a tax consultant.

The incentives ease the burden on a new business and encourage employment and good pay, which then benefits the State. Some of the tax benefits to look forward to are discretionary grants, research and development tax credits, and computer-related tax exemptions.

Right-To-Work State

Employees in a right-to-work State are protected by the law regarding freedoms about payment of fees and joining a labor union. The Act prohibits employers from demanding that a potential employee joins a workers union to earn employment.

Arizona is a right-to-work State, pulling a vast pool of talent to the area. Due to this, employers have a better chance to select from the many qualified people, ensuring that they get the right employees for the job. The notion behind this Act is to make the business environment friendlier and give rise to more opportunities.

It is worth noting that a right-to-work environment needs to be supported by other ideals such as a more lenient work schedule and open lines of communication between employees and management.

As more states join in the right-to-work bandwagon, labor unions could witness the detriment. If fewer workers pay union fees, the associations may not have enough funding to represent the employees when the need arises.

Economic Growth

The reliable growth curve works wonders in establishing a steady growth, albeit small. Economic growth can be attributed to the relatively ease of starting a business and the lack of complex laws and regulations. When done correctly, you incur way less legal fees than other States.

Real Estate and Living Expenses

Real estate affects the profitability and sustainability of a company. In Arizona, the availability and affordability of high-quality office complexes and factory buildings are low compared to other States in the same economic graph. When a business is established in a city where the cost of rent is minimal, companies can plow the savings back into the business.

The other benefit of moving your business to Arizona is that housing is of good quality and affordable. The cost of living is also more forgiving, making it possible for people to have a higher quality of life for a fraction of the cost. Arizona comes in second place as one of the cheapest States to live in.

Statistically, people who live in most cities in Arizona will spend roughly seventy percent of their income on living expenses, including rent which is quite a good number compared to the average of other States, which is eighty percent. This means that living in Arizona gives people the room to enjoy certain luxuries, making them have a better attitude and output in their work.

Family life is also rather friendly with the various recreational parks, restaurants, and one of the best education systems in the country. A great example of this can be found in the Buckeye real estate market. Not only are Buckeye, AZ homes for sale among the most popular real estate options in the state, their schools are highly-regarded for providing a great education, and the variety of parks, shopping centers, and restaurants continues to grow.

The Weather

It is relatively easy for employees to be more productive when working in optimal weather conditions. The sunny disposition of Arizona comes into play here. The weather patterns here do not deviate much and are thus predictable enough for businesses. This ensures that a company can plan the events it has throughout the year with almost certainty that weather will not interfere.

The predictability element reduces costs for the business in that there is little need to plan and set aside funds for heavy rains in drought, which is unlikely to happen. Companies can also work all year round without closing due to adverse climatic changes.


A sound transport system is necessary for the business to thrive. Lack of such connections makes it difficult for customers to reach the company and for companies to get the raw materials they need. Arizona had six mainline interstate highways that enable easy movement in and out of this State. There are also airports and rail systems in the Grand Canyon State.

Businesses are guaranteed safe and fast transportation for themselves and their products. Being able to deliver services on time is an attractive quality for business, makes clients and customers trust you more, and triggers brand loyalty.

Business Support

The many companies in Arizona have also attracted many investors. These investors bring business expertise and know-how to help startups avoid common pitfalls prone to new business ventures. New businesses need all the financial and tax advice to grow and expand. The availability of good support and role models in the same industries makes economic development easier.

Technological advancements

Technological innovations make a business become better and last into the unforeseeable future. Arizona is rapidly becoming a well-known tech innovation hub that attracts investors and talent. This increases the innovations and attracts the best of the best from within and other countries. In Arizona, this technology is readily available for the local market and, in most cases, is much more subsidized.

Utilizing these technological innovations increases the ease of doing business, which will reflect positively on the developments in the State. Arizona is being looked at as the new home of technology. This is evident with the plans underway to build a smart city next to Buckeye by Bill Gates. Businesses around that city will benefit from a new and diverse clientele, giving rise to new ideas and companies.


Many people gravitate towards Arizona for the reasons stated above and many more. It is a state that shows great promise for many industries, and all the incentives attached to it make it an obvious choice for many.

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Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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One comment on “Businesses are Flocking to Arizona- Here’s Why”

  1. There are two VERY flawed statements in this article. Arizona is no longer the second cheapest city to live in. In fact it has become one of the most expensive cities to live in, in the past 5 years. As fast as housing and rental prices have risen, incomes have not, and in general most people earn less in Arizona than many other states with similar or greater populations. Last but not least, Arizona HARDLY has one of the best education systems in the country. Arizona usually comes in last or next to last in terms of money spent per student on education, and in other categories. Teachers in Arizona are some of the lowest paid teachers in the country.

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